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New Technology Makes Natural Gas a Viable Replacement for Oil

Chuck, the OEMs have made NG vehicles for years. They were sold into fleets that had their own high pressure CNG refuelling stations - consumers did not have access to CNG for vehicles at the time. We don't need to push the OEMs, it's mature technology. We need to push the infrastructure to set up stations around town (not everyone will want to refuel at the garage, and you have more range when you can refuel on the highway.)

Will Automakers Switch to Natural Gas?

As someone involved with natural gas (NG) vehicles, too, I disagree with Scott. The electric expense relative to a refinery? BZZZT. If consumers can buy a garage version to fill their own car, the industry can afford larger compressors.

Tank inspections? If NG becomes popular, go back to the car dealer for the 3yr inspection- they have to service them anyway .

Would secretaries rather sit in front of a Molotov cocktail? Please, let's not scare people out of Home Depot because of a propane forklift that might blow up. I'd believe more injury from a loose tank being propelled, but not by fire or explosion. That's only in the movies.

The cost for tanks is cheaper now.

I agree the biggest problem is no NG stations. But there weren't diesel pumps before, either.

Will Automakers Switch to Natural Gas?

The OEMs already did NG cars (Dodge 5.2L, Ford Crown Vic 4.6L) for fleet sales. They would love to do more, since the emissions and calibrations are easier to deal with than gasoline.

The first sentence has the hint why they weren't massively popular - it isn't the acceptance, cost, driveability, or maintenance. It's the fuel distribution to customers. Fleets can afford to have their own refueling station and until there is a convenient NG station at every corner, people aren't going to convert older cars or buy new NG cars.

There are no NG "refineries." As such, there is a huge cost savings and I'm willing to let market forces compete for my dollar, which will keep prices low. Plus, having two vehicle fuel supplies will keep the US economy on steady footing - gee, imagine having a choice when Iranian oil is embargoed after their first nuclear underground test.

When you calculate the KWh to replace 100 billion gallons (US annual gasoline consumption) let us know how the electric grid can handle it. Also, given that electricity can't yet be stored easily or efficiently, it will be a nice second or third alternative but not primary. There is yet no way to store wind or sun, like you can coal, oil, or NG.

Chesapeake Energy: Natural Gas Supply Responds to Price

Most utility companies have demonstration fleets - you can always ask where they did the conversions. Also, Fuelmaker compressors claim the 200 miles if you drive a Honda at 30mpg (gas equivalent) so you won't be going 200 miles in your SUV.

However, having been a lubricant formulator in a past life, CNG is a wonderful fuel in regards to engine life, engine cleanliness, higher octane, etc. Ford used to sell Crown Vics with CNG conversions. The technology is there, the only part missing is the distribution system for consumers. From an oil company employee perspective, this ought to be the leading choice by far, and should have been promoted before the use of corn-based ethanol.

Recent World Events Are Bullish for Metals

I think you've left out timing in your analysis of coal and natgas supply. Oil takes time to find and produce from deepwater holes; natgas is still being found under ground rather than water (witness all the shale properties that are coming onstream soon) and can reasonably catch up to fill energy supply shortages. However, like oil, you don't flip a coal switch to suddenly get more.

And because electricity growth outside the US is now the same as coal growth the price of coal is less an immediate supply-demand issue, but perhaps more a global growth proxy. ESKOM is going to buy expensive coal long before they build a nuclear power plant.